ERP Session 2 - Course Notes PDF

0. Reminder 0. Reminder 0.1 Digital transformation Digital transformation A process of change induced by the intensive use of digital technologies Relies on...

0. Reminder 0. Reminder 0.1 Digital transformation Digital transformation A process of change induced by the intensive use of digital technologies Relies on “digitization”: transformation of products, services and processes into digital variants Leads to a holistic review of the company thus creating value: Attractiveness Growth Pedagogy Economy Altruism Strengthen Enter new Promote skills Optimize Allow access the visibility markets development costs and to knowledge and efforts for all uniqueness of the offer 0. Reminder 0.2 Digital technologies SMAC Assistant Office personnel Data Science Prévisions IA Conna issance cl i ent Slack 365 d’activités La transformation de Optimisation Connexion et Empl oyee Réseau Experi ence l’abstraction des Social socialisation rapide et Hadoop Entreprise Data Viz données en actifs facile Data tangibles et Lake visualisables As A Digital Service Oracle Workplace Réseaux L’utilisation des SOCIAL Digital technologies mobiles ANALYTICS La centralisation des AWS Workgrid pour dépasser les accès aux données et contraintes de Big aux applications Plateforme Power collaboratives ATAWAD localisation Data BI Middleware Productivité OS Cluster Apps IoT Dématé- Store CLOUD rialisation MOBILE Conta i ners Enterprise Datacenters Apps Mobiles Mobility Smartphone / Management API Cloudera Tablettes Public / Privé / BYOD Hybride 1 0. Reminder 0.2 Digital technologies DARQ Large-scale collaboration and Automation of business transaction between strangers Distributed processes Ledger Self-executing smart contracts Make the benefits of Improved data provenance analytics more widely and reliability available Artificial Analyze and use Intelligence unprecedented amounts of data Reality Virtual, augmented and assisted Global Cybersecurity Information on demand and Transformation Quantum accessible hands-free Discovering new computing designs and responding to growing computational demands 0. Reminder 0.3 How to reap the benefits of digital technologies? To benefit from data via these technologies, you must: Process and interpret data Establish a structure according to the objectives and systematizing the continuous environment of the management of interpreted organization in order to create data. value. This continuous management This value can be perceived at must be integrated into the the BM, UX and OP levels. company's practices and assets Generate Information from Implement an data Information System Session 2 : From the Information to the Information System 2  SESSION 2 1. Information 1. Information 1.1 Data/ Information/ Knowledge 1. Information 1.1 Data/ Information/ Knowledge A data is a set of symbols (numbers, letters, images, sounds, etc.) used to describe objects or events. OBSERVATION Data expressed as Objects and symbols (figures, texts, events from (Name, classification, drawings) the real world measure) How valid is it? Distortion between what we want to describe and the symbols we used to describe it 3 1. Information 1.1 Data/ Information/ Knowledge Exhibition in an art gallery Art lover Message posted: A pretty painting that looks like « Bassin aux nymphéas » of Monet 1. Information 1.1 Data/ Information/ Knowledge  Information is a data interpreted in a format that makes sense for a receiver Data expressed as INTERPRETATION INFORMATION symbols (figures, (Inferred from the texts, drawings) (Interpretive model) data) A data can generate different information according to its interpretation (Painting resembling a known masterpiece, Canvas at affordable price...) 1. Information 1.1 Data/ Information/ Knowledge Exhibition in an art gallery Art lover Art seller Message posted: Message posted: A pretty painting that Impressionist panting at a looks like « Bassin aux reasonable price nymphéas » of Monet 4 1. Information 1.1 Data/ Information/ Knowledge What do you see? 1. Information 1.1 Data/ Information/ Knowledge Raw data Interpreted information Production Finance planning Marketing Resources management Sales Warehousing Accounting Pieces Database Information Logistics Executive System management Expedition HR Raw material Commands Supply chain Purchases Maintenance 1. Information 1.1 Data/ Information/ Knowledge Each individual has its own interpretive model. Data expressed as INTERPRETATION INFORMATION symbols (figures, (Inferred from texts, drawings) (Intrepretive model) the data Contextual factors Cognitive style E.g. Financiers perceive recovery E.g. An engineer looks at quantitative information, salespeople perceive information while an artist is more turnover information intuitive Criticality of the decision to be taken Adherence to company culture E.g. Interpreting customers’ financial E.g. Compared to long-standing data to issue an invoice or take them employees, new recruits may know to court and apply different analysis techniques Lucas (2009) 5 1. Information 1.1 Data/ Information/ Knowledge Gosh, it’s too hot ! I should turn on the heating to The thermometer shows avoid a cold! 2 ° outside 1. Information 1.1 Data/ Information/ Knowledge  Knowledge is an understood information, i.e. assimilated and used, which leads to an action. Florence Stenuit Hautdidier (CNAM) APPROPRIATION KNOWLEDGE INFORMATION (Explanations, (Inferred from the (Internalisation to lead to justifications, data) action) advice…) Knowledge refers to information plus know-how Kogut & Zander (1992) It results from the interaction between what we perceive of reality and what is already in our memory. F. Varela (1993) 1. Information 1.1 Data/ Information/ Knowledge Knowledge types Transmitted via formalized Explicit media (Reports, documents,...) Knowledge Not fully codifiable, Tacit appropriable by practice Nonaka (1994) 6 1. Information 1.1 Data/ Information/ Knowledge INTELLIGENCE KNOWLEDGE (Understanding and (Explanations, Learning anticipation to make justifications, (Continuous adaptation) the right decisions) advice…) Intelligence is the ability to make good use of developed knowledge in order to make the right decisions and actions while adapting to the environment. 1. Information 1.1 Data/ Information/ Knowledge Know how to use knowledge to create value + selection + experience + rules+ constraints + Intelligence learning = Advice, explanations, justifications Knowledge + reasoning + abstraction + linking + application = Structured, summarized and interpreted data Information + signification + structure = Texts, facts, images, codes Data 1. Information 1.2 Characterizing Information Unexpected: New creative alternatives Expected: Confirmation for uncertainty reduction Surprise effect Summary: Problem Identification Level of Detailed: Assessment and Flow detail Problem Solving Possible typologies Type of Quantitative: Encrypted, Aim coding statistical Qualitative: Not measurable Type of support Paper Digitized 7 1. Information 1.2 Characterizing Information Types of information according to its aim OPERATION - Essential to the functioning of the company – transaction control information – job control and results information INFLUENCE - Information whose purpose is to influence the behavior of internal and external actors (Stimulate, motivate...) ANTICIPATION - Allows you to predict some upcoming changes in your socio-economic environment (Strategy, risk...) 1. Information 1.2 Characterizing Information Aim of information Operation Influence Anticipation Examples Customer order Hallway noise Competitor innovations Supplier Memos Marketing information An employee's pay slip The internal newspaper Amendment of Communication pads legislation on a particular product Properties Mandatory Very different depending Steering Information Very repetitive on the company : Relates to little Very formalized Inexistent very repetitive tasks Widely computerized important Exists in many forms Structured informal Impacts If unstructured, it would Can penalize the This information is to be cause many problems at economic performances analyzed with caution the interface of units by the bad atmosphere because it can endue and employees established... many negative aspects 1. Information 1.2 Characterizing Information Types of Information according to its flow INGOING - Coming from outside the company and routed to it SPANNING - Flows are born at one point of the company to lead to another point or sometimes the initial one OUTGOING - These information flows are produced by the company and are intended for external actors. 8 1. Information 1.2 Characterizing Information SPANNING INGOING Company OUTGOING Suppliers Suppliers customers customers banks banks Partners Partners Shareholders... Shareholders... 1. Information 1.2 Characterizing Information Supplier 1 : Multinational Client 1 : Pékin Retailers enterprise division A : division B : Houston Rabat Supplier 2 : Client 2 : Bali Wholesalers, distributors division C : division D : Munich Hong-Kong Supplier n : Client 3 : Prague Hypermarkets 1. Information 1.2 Characterizing Information Information flow Ingoing Spanning Outgoing Examples A supplier invoice, Circuits of information: Customer invoice, customer order,... commercial, production, supplier order, annual accounting, … report to shareholders, advertising, sponsorship,... Properties Important for managing Produced by the Promotes the relationships with company for its own use, performance of the partners circulates through company predefined circuits In support of its commercial activity Usages Direct use for the Can induce Profit creation current operations of inconsistencies due to the company different ways to code, store … Strengthening the competitive advantage 9 1. Information 1.3 Let’s recap ! Everyone manipulates and Digital technologies exchanges information using IT according to the processes Key tools to process the Everyone is putting in place masses of data collected processes to capitalize on IT internally and externally All identify opportunities to Implementation of an Processing to facilitate the interpretation of data into use IT to the advantage of the organization as a whole Information information with high System added value for the organization Perceived value in the redefinition of BM, UX, OP for a more efficient Responsibility of operators and company business managers in addition to IT specialists SESSION 2 2. Information System 2. Information System 2.1 Definition et dimensions The company’s activity relies on Under internal and external constraints Operating Monitoring system Information system System Management Management of of physical flow decisions’ flow Transform raw Mananagement of Set objectives and material (material, control the operating information flow data, etc.) into system to achieve products/services them Information about constraints Exchange between operating and monitoring systems Information about operational tasks 10 2. Information System 2.1 Definition et dimensions Definition of an IS The information system of the enterprise is the part of the real that is constituted of organized information, events having an effect on this information, and of actors who act on this information or on the basis of this information, according to processes aimed at a purpose of management and using information technologies. D. Berthier, C. Morley, M. Maurice-Demouriaux, Systèmes d’Information et Management, Vol. 10, n°3, 2005, p. 26 2. Information System 2.1 Definition et dimensions Definition of an IS IS is an organizational communication language that is designed to represent certain aspects of past or future activity reliably and objectively, quickly and economically. The sentences and words of this language are the data whose meaning comes from rules developed by men or by machines. J.-L.. Peaucelle (1981) 2. Information System 2.1 Definition et dimensions Definition of an IS An organized set of resources: hardware, software, personnel, data, procedures, etc. making it possible to acquire, process, store information (in the form of data, texts, images, sounds, etc.) exchanged in and between organizations. (Reix, 2004) 11 2. Information System 2.1 Definition et dimensions Dimensions of an IS Hardware Physical equipment for collecting, Organization storing, and disseminating information (Computers, mobiles, servers, clouds, networks, etc.) Technologies Management Software Detailed and pre-programmed instructions to control and coordinate hardware components (Analytics, monitoring, communications, etc.) 2. Information System 2.1 Definition et dimensions Business processes Culture Series of steps to carry out an activity Values, habits and priorities (Delivery, recruitment, etc.) Differs from one company to another Formal rules to guide the completion of Shape the use of IT tasks Commonly Approved Informal Practices Structure Involve the use of IT Organizational design (Hierarchy, Organization decentralization) Reporting (functional, matrix, departmental) Define the use of IT Technologies Management 2. Information System 2.1 Definition et dimensions Human resources capable of using technologies to: Prepare for decision-making Organization See changes in internal and external environments Process data and interpret it Technologies Management Decide and act Guide the strategy Create products/services Design the organizational structure 12 2. Information System 2.2 Changes induced by the IS Systemic effects Mutual interactions between the three dimensions: Management (HR) - Design and develop - Define tasks - Propose and implement - Design the company - Use and adhere language - Ensure maintenance - Implement control systems, rules and procedures - Establish information circuits In support of the processes Technologies and the dominant culture: - acquire - store - to treat - communicate Organization (Processes) Interaction 2. Information System 2.2 Changes induced by the IS Systemic effects The 3 dimensions of an IS are interdependant A change in a dimension is likely to affect the other dimenions Examples: Advanced technology with insufficiently trained HR would not be effective A technology with too many operational modules (SAP type) is unsuitable for a small structure (Start-up) Complicated technology without clear organizational processes around it cannot be implemented 2. Information System 2.2 Changes induced by the IS Levels of change 2nd : Inform 3rd : Transform 1st : Automate Transformer la Automate manual Informer Inform la prise de decision-makers Transform the Definition tasks décision and decision-making conduite de business conduct l'entreprise Réformer la structure Increase production Redéfinir les missions Reform de the company l'entreprise Redefine user missions structure (flattened, capacity des utilisateurs (Aplatie, decentralized, etc.) décentralisée,...) Effects Redéfinir les rôles des Redefine user roles in the utilisateurs dans Réingénierie Reengineering dethe Reduce labor costs company l'entreprise l'interaction entre les interaction between and user efforts Rationnaliser Rationalize thel'usage use ofdes processus processes ressources resources 13 2. Information System 2.3 Stakes of IS Definition A stake characterizes a set of benefits or losses related to a situation or an event. It is whay you risk on the result of something such as a game or competition. [Cambridge dictionary] Types of IS stakes Strategic stakes Social stakes Organizational Environmental stakes stakes 2. Information System 2.3 Stakes of IS An overhaul of the IS to improve agility Cost reduction and coordination time (Inditex: Just-in-time production as an alternative to outsourcing in Asia) Digital workplace (collaborative work, teleworking, virtual Organizational teams) stakes Improved decision making (accessible massive data and powerful analysis tools) An unnecessary overhaul of the IS which can generate risks Technology risks: Vulnerabilities to cyberattacks and bugs Risks linked to employees: Lack of digital intelligence leading to infobesity, technostress, poor management of personal/professional life balance Risks linked to regulations: Non-compliance with laws (GDPR, HIPAA, SOX, etc.) 2. Information System 2.3 Stakes of IS Implement an IS to create winning strategy Aggregation of non-market services and market services (Amazon, FNAC, etc.) Strategic stakes Business Models based solely on non-market services (Doctissimo, LesNumériques) Implement an IS that is not aligned with the company’s socioecomic contect Compulsory chrono-competition (stock markets, energy suppliers, etc.) Failed digital shift which led to the fall of companies (Kodak, Surcouf, etc.) 14 2. Information System 2.3 Stakes of IS Implement an IS to cover community needs Information exchange for collective intelligence (Wikipedia, Open Source communities) Access to the world for the most disadvantaged or isolated Social stakes (Microcredit facilitated by the Internet, network of care and medical expertise in Africa) Implement an IS that might generate social issues There is no such thing as forgetting on the Internet: e- reputation No more privacy issues with the advent of IoT Risk of manipulation by buzz (Hoaxes distributed via social networks) 2. Information System 2.3 Stakes of IS Illusory environmental improvements Expectation of less mobility with the GPS, but more movements observed Planned obsolescence of computers generating more Environmental electronic waste stakes Greenhouse gas emissions 4% in 2020 due to digital (versus 8% for land transport and 2% for air transport) Carbon footprint resulting from data centers (Gangnam Style, viewed 3.4 billion times, consumed the equivalent of the annual production of a nuclear power plant) Pollution due to emails sent (12 billion emails are sent every hour worldwide, emitting 50 Gwh, or the hourly production of 18 nuclear power plants) 2. Information System 2.4 Types of IS Different needs and processing of information Decisions impacting the Design of unifying entire organization (Eg: vision and mission Strategic Management Introduction of a new Top management product) Control of daily Decisions for each division operations Middle Management independently of the rest of Sub-division managers and independent teams the organization (Eg: Regional Marketing Plan) Decisions for operator Produce and Operational Management provide services functions (Eg: Quantity to Plant and administration operators produce) Sales & Marketing Production Finance Acconting Human Resources 15 2. Information System 2.4 Types of IS Different IS according the the needs Decison Support Strategic Management System (DSS) Top management Management Middle ManagementInformation System (MIS) Sub-division managers and independent teams Transactional Processing System Operational Management (TPS) Plant and administration operators Sales & Marketing Production Finance Acconting Human Resources 2. Information System 2.4 Types of IS Transactional Processing System (TPS) A basic system that: supports the day-to-day operations of the company, records routine and daily transactions, consists of highly structured and predetermined tasks, Examples: Operational Sales and Production & Finance & HR functions Marketing Maintenance Accounting Examples of Order Machine control General Employee Skills systems management system ledger Inventory system Quality control Fund Payroll Sales system management management commission system system system 2. Information System 2.4 Types of IS Management Information System (MIS) An advanced system that: manipulates highly aggregated information, i.e. made from a large volume of data (e.g. the monthly or annual turnover of an agency) facilitates decision-making using past and present data from TPS relies on data warehouse technology and multi-dimensional analysis offers temporal views of the company's key indicators (e.g. turnover, total sales, best products sold, annual cost of storing a product), in the form of reports Evolution of turnover Evolution of net income 16 2. Information System 2.4 Types of IS Management Information System (MIS) Types de reports generated: Scheduled Progress Reports: Reports in a predetermined format designed to provide managers with information at regular intervals. Examples: weekly sales analysis reports, monthly financial statements. Exception records: production of information on exceptional situations Example: Report containing only customers who exceed their credit limit. 2. Information System 2.4 Types of IS Decison Support System (DSS) A sophisticated system that: is used for non-routine decisions supporting strategy relies on internal information from TPS and MIS, but also external allows you to answer questions that do not have a priori solutions such as:  In which market should we position ourselves?  What measures should we adopt to deal with a new entrant? integrates mathematical models and predictive techniques over a wider scope than MIS, offered via an interactive simple interface SESSION 2 3. Exercises 17 3. Exercises 3.1 Case study Go to Moodle and dowload the document « Session 2 – Case Study » reporting the implementation of IBM Watson at CréditMutuel. The case is also available at https://www.ibm.com/watson/stories/creditmutuel Answer the following questions and send the response’ document through Moodle 1. What are the motivations of Credit Mutuel to implement this system? 2. What type(s) of IS is it? Justify your answer 3. What are the changes induced with regard to the 3 dimensions of an IS? 4. So what is the level of change induced by this IS? 5. In your opinion, what are the stakes that this system represents? 18